Modelling Exogenous Variables in Human Capital Formation through a Heteroscedastic Stochastic Frontier
The objective of this paper is to suggest the use of a stochastic frontier model in which the inefficiency component is heteroscedastic in the measurement of technical efficiency in Human Capital Formation in the Italian University System. The heteroscedastic frontier model enables one to consider the effect of students’ individual characteristics and the influences of the resources and organization of the specific faculty on efficiency. The suggested model is applied to the case of Florence University graduates. The results show that the model specification is strongly supported by the data. Moreover, the suggested specification explains variation in technical efficiency in terms of graduate-specific factors. The technical efficiency scores obtained are comparable across faculties. Copyright International Atlantic Economic Society 2008
Volume (Year): 14 (2008)
Issue (Month): 1 (February)
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